Precision Drilling (PDS) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 15% YoY to $532 million, Adjusted EBITDA increased 6% to $125 million, and net earnings attributable to shareholders were $21 million versus a $7 million loss in Q3 2025.

• North American activity gains drove growth; higher U.S. reactivation costs and weaker international results partly offset the improvement.

• Management expects U.S. operating margins to rise approximately 30% in Q4 as rig reactivations slow, supporting a stronger setup for 2027.

Financial highlights

• Q3 revenue was $531.7 million, up 15.0% YoY; Adjusted EBITDA was $125.1 million, up 6.4%.

• Q3 net earnings attributable to shareholders were $20.9 million, or $1.65/share, versus a $6.8 million loss, or $0.51/share, in 2025.

• 9M revenue increased 10.6% to $1.51 billion; Adjusted EBITDA declined 4.7% to $346.1 million and shareholder earnings fell 15.7% to $37.1 million.

• Q3 cash provided by operations was $70.8 million versus $75.9 million; 9M cash provided by operations was $279.5 million versus $286.8 million.

• Q3 capital expenditures were $82.5 million versus $69.3 million; 9M capital expenditures were $223.8 million versus $182.1 million.

Outlook and guidance

• 2026 capital budget increased from $265 million to $275–$285 million, including $172 million for maintenance, infrastructure and intangibles and $103–$113 million for expansion and upgrades.

• Q4 Canada operating margin is expected at $13,500–$14,500 per utilization day, consistent with Q4 2025; U.S. margin is forecast at US$9,500–US$10,500 per utilization day.

• U.S. operating margins are expected to increase approximately 30% in Q4 2026 as reactivation activity slows.

• Near-full winter utilization is expected for Canadian Super Series rigs; North American activity is expected to remain resilient through year-end, with growth potential emerging in early 2027, assuming supportive commodity prices and no material market change.

• The 2026 target is to repay $100 million of debt and continue share repurchases; $75 million of debt reduction and $47 million of buybacks were completed year to date.